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PendragonY

PendragonY
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  • Dumping Apple Makes Sense For Immediate Income Growth [View article]
    "I have already sold some of my MLP, over a year ago and nada..."

    NADA? REALLY? Now, depending on how long you have held the units, how much they have paid in distributions, how much of the partnership income has accrued to you, what you did with the distributions, whether or not you held the units in a taxable account, whether or not you sold the whole position or just a part, and the total size of the transactions, the tax implications might not be significant but they are hardly non-existent.

    For instance, do you know about recapture? Passive losses? The tax differences between selling all the partnership units and just some?
    Apr 25, 2015. 12:09 PM | Likes Like |Link to Comment
  • Dumping Apple Makes Sense For Immediate Income Growth [View article]
    "Then that is another thing that does not make sense. The only objective way to judge value is to consider both dividends, and growth."

    You can't judge value objectively, its a subjective quantity. And there are many ways to judge it. That's why there is almost always someone to buy a stock when you want to sell it and its entirely possible that both sides of the trade are making a good trade.
    Apr 25, 2015. 12:00 PM | 1 Like Like |Link to Comment
  • Rich Kinder: 'The Kinder Morgan Game Plan Is Still On Track' [View article]
    UBTI stands for Unrelated Business Taxable income. Its income that is generated by tax advantaged entitities (like charities and IRAs) that isn't related to the business they are in. For an IRA, its in the business of generating savings for retirement. MLPs (and other partnership structures) can generate income that is not related to that goal and is thus potentially subject to tax.
    Apr 25, 2015. 11:52 AM | Likes Like |Link to Comment
  • Retired Dividend Investors Are Deluded By Yield On Cost [View article]
    Yield on Cost is a good metric when used on a portfolio wide basis. Its use on a per stock basis should be limited, and shouldn't effect buy and sell decisions.

    That said, its not always a good trade to replace a stock where capital appreciation has reduced its yield with another stock that has a higher yield. The replacement stock should not only have a higher yield, but should have as safe (or safer) a dividend payment, and as good or better growth.

    I don't like to drop stocks that have done what I require of them, which is to regularly pay and grow the dividend. So rather than liquidating a position, I tend to trim it some, and use those funds to buy another stock. I might not get as big a bump in income, but I also don't lose good performers either.
    Apr 25, 2015. 10:51 AM | Likes Like |Link to Comment
  • Aiming My Sights On A Beaten-Down STAG Industrial [View article]
    The monthly payments are very nice. Got $75 this month.
    Apr 25, 2015. 10:40 AM | Likes Like |Link to Comment
  • The Skewed Nature Of Dividend Growth Rates [View article]
    I actually calculate a weighted rate for income growth in my portfolio. Its easy enough to do with Excel. You just take the sum of the expected dividends and divide it by the sum of the previous year's dividends.
    Apr 25, 2015. 10:31 AM | Likes Like |Link to Comment
  • The Skewed Nature Of Dividend Growth Rates [View article]
    Albert,

    "One flaw I see in your analysis is assuming that KMI can continue to grow its dividend at the same rate over 10 years. "

    Its not a flaw at all. KMI was used as an example. To show a specific effect. That effect doesn't depend on what rate KMI actually raises its dividends at.
    Apr 25, 2015. 10:24 AM | Likes Like |Link to Comment
  • Aiming My Sights On A Beaten-Down STAG Industrial [View article]
    Eric,

    Good article on STAG. I have liked it a long time, and have had cash in it for a while now. If I wasn't already way overweight in it, you outline several reasons to put more money in.
    Apr 25, 2015. 09:16 AM | 1 Like Like |Link to Comment
  • Aiming My Sights On A Beaten-Down STAG Industrial [View article]
    "Brad Thomas was recommending ARCP at one time too."

    And he also recommended getting out in a timely manner as well.
    Apr 25, 2015. 09:14 AM | 3 Likes Like |Link to Comment
  • Feed Your Family With These 4 Monthly Paying REITs [View article]
    I was looking to add another monthly payer to my portfolio, and it looks like LTC will fit the bill. Thanks for the info Brad.
    Apr 25, 2015. 08:42 AM | Likes Like |Link to Comment
  • Realty Income Corp. Proves Monthly Dividends Amplify Returns [View article]
    Gent,

    Such a long argument to dispute an already decided argument. Ever hear of Dollar Cost Averaging? When you are reinvesting the dividends a stock produces to buy more of the stock, that is what you are doing. And DCA provides better performance with smaller more frequent purchases.
    Apr 25, 2015. 08:10 AM | 2 Likes Like |Link to Comment
  • Realty Income Corp. Proves Monthly Dividends Amplify Returns [View article]
    Long,

    Companies that pay monthly dividends don't borrow the funds the pay them for the first two month of the quarter. When they convert, they pay on their regular quarterly date, but only 1 month (instead of 3). So they get to keep funds they used to pay out for extra time.
    Apr 25, 2015. 07:52 AM | 1 Like Like |Link to Comment
  • Comparing The DG50 To My 3-Fund Portfolio On The Road To Retirement [View article]
    "my personal belief is that the careful investor who seeks the greatest total return and the careful investor who seeks to build a growing stream of income by relying on high-quality dividend-paying companies are probably both going to end up winners with probably not a ton of daylight between their eventual outcomes. "

    I don't understand why folks think that managing for TR will allow the investor to meet generate lots of income in retirement but think that investing for income will somehow short the investor on TR AND income.
    Apr 25, 2015. 07:49 AM | 3 Likes Like |Link to Comment
  • Comparing The DG50 To My 3-Fund Portfolio On The Road To Retirement [View article]
    FD,

    "Now granted nobody knows which stocks will generate the greater return, but please realize you don't watch the income to determine whether the value of your account is going up over time."

    Well, actually I DO watch the income my portfolio generates over time and track its increase. Since my GOAL is to replace the income from my job, I care about how much income my portfolio generates. That income IS the value of my account, and the price I can sell the shares for has far less value to me (outside how I could use the cash so generated to increase my INCOME).
    Apr 25, 2015. 07:45 AM | 1 Like Like |Link to Comment
  • Rich Kinder: 'The Kinder Morgan Game Plan Is Still On Track' [View article]
    UP,

    "If you think Richard Kinder treated his long term KMP holders fairly, and you believe him when he promises that "the best is yet to come", then by all means go ahead and invest with him."

    Well the vast majority of KMP holders thought so.

    "I admit that I was not clairvoyant when I started investing in MLPs back in the early 90s."

    You are using the wrong word, but again, no special abilities needed. You ignored a KNOWN FACT about the distributions you were receiving and their tax treatment. And you had NO PLAN for dealing with a forced sale. And you had a bad accountant (you keep giving more evidence of this fact all the time).

    "If you have the ability to do so, then I'd encourage you to start some kind of advisory service to tell people what to "plan" for 15 years down the road when they make an investment. "

    Well, see I did foresee forced sale as a problem, which is why I took advantage of other Kinder vehicles. You could have done that too.

    The fact of the matter is that you took a chance that you could avoid a big tax consequence and you lost. Richard Kinder didn't make you take that chance, nor did he make you not hedge that risk. And thus its YOUR FAULT and yours alone that you suffered this tax consequence. You made a LOT of money over the years by taking that bet, stop whining!
    Apr 24, 2015. 07:11 AM | 1 Like Like |Link to Comment
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